If business taxes are reduced and the real interest rate increases

One major advantage of automatic stabilizers when compared to discretionary fiscal policy is that answer question 7 answers they require legislative approval built in stabilizers have no impact on the federal budget while discretionary fiscal policy does automatic stabilizers can pull an economy out of a deep recession while discretionary fiscal policy cannot the lags associated with built in stabilizers are shorter than those associated with discretionary policy

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Q: If business taxes are reduced and the real interest rate increases?

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Q: If business taxes are reduced and the real interest rate increases?

If business taxes are reduced and the real interest rate increases consumption and saving will necessarily increase the level of investment spending will necessarily increase the level of investment spending might either increase or decrease the level of investment spending will necessarily decrease?

- Other things equal if the real interest rate falls and business taxes rise we will be uncertain as to the resulting change in investment we can be certain that investment will rise we can be certain that investment will fall investment will rise until it is equal to saving

What happens if business taxes are reduced and the real interest rate increases?

- Other things equal if the real interest rate falls and business taxes rise

If business taxes are reduced and the real interest rate increases consumption and saving will necessarily increase the level of investment spending might either increase or decrease the level of investment spending will necessarily increase the level of investment spending will necessarily decrease?

- Other things equal if the real interest rate falls and business taxes rise investment will rise until it is equal to saving we will be uncertain as to the resulting change in investment we can be certain that investment will rise we can be certain that investment will fall

If busines taxes are reduced and the real interest rate increase?

- 43 if business taxes are reduced and the real interest rate increases

Do built in stabilizers need legislative approval?

- A major advantage of the built in or automatic stabilizers

If business taxes are reduced and the real interest rate increases consumption and saving will necessarily increase the level of investment spending might either increase or decrease the level of investment spending will necessarily increase the level of?

- Business tax reduced real interest rate increase

Would the lags associated with automatic stabilizers be longer shorter or the same as with discretionary fiscal policy?

- One major advantage of automatic stabilizers when compared to discretionary fiscal policy is that

If buisness taxes are reduced and the real interest rate increases?

- 79 if business taxes are reduced and the real interest rate increases a consumption and saving will necessarily increase b the level of investment spending might either increase or decrease c the level of investment spending will necessarily increase d the level of investment spending will necessarily decrease

Would the lags associated with automatic stabilizers be longer shorter or the same as with discretionary fiscal policy would they be longer shorter or the same as with monetary policy justify your answers?

- One major advantage of automatic stabilizers when compared to discretionary fiscal policy is

I business taxes are reduced and the real intrest rate increases?

- 3 if business taxes are reduced and the real interest rate increases

If the business taxes are reduced and the real interest rate increase?

- Business taxes reduced and the real interest rate increases

If business taxes are reduced and the real interest rate increases answer consumption and saving will necessarily increase the level of investment spending might either increase or decrease the level of investment spending will necessarily increase?

- Refer to the above diagrams in which ad1and as1are the before curves and ad2and as2are the after curves other things equal an increase in investment spending is depicted by

If business taxes are reduced and real interest rates increases then?

- Other things equal if the real interest rate falls and business taxes rise

If business taxes are reduced and the real interest rates increase?

- Business taxes reduce and interest rates increase

If congress adjusted the u s tax system so that the mpc was reduced the a economy would become more inflation prone b economy would become less stable c stability of the economy would be unaffected d economy would become more stable?

- The standardized budget refers to the inflationary impact that the automatic stabilizers have in a full employment economy

What advantages and disadvantages do the automatic built in stabilizers have compared to discretionary fiscal policy?

- A major advantage of the built in or automatic stabilizers is that they

When current government expenditures equal current tax revenues and the economy is achieving full employment a the standardized budget has neither a deficit nor a surplus b the standardized budget may have either a deficit or a surplus c fiscal policy is contractionary d nominal gdp and real gdp are equal?

- In a certain year the aggregate amount demanded at the existing the existing price level of 100 billion consumption 40 billion of investment 10billion of net exports and 20 billion of government purchases full employment gdp is 200 billion

When current government expenditures equal current tax revenues and the economy is achieving full employment fiscal policy is contractionary the standardized budget may have either a deficit or a surplus nominal gdp and real gdp are equal the standardized budget has neither a deficit nor a surplus?

- The standardized budget refers to

If congress adjusted the u s tax system so that the mpc was reduced the a economy would become more inflation prone b stability of the economy wo?

- Refer to the above diagrams in which ad1and as1are the before curves and ad2and as2are the after curves growth full employment and price stability is depicted by

If the economy is encountering inflation supply side economists might recommend?

- Refer to the above diagrams in which ad1and as1are the before curves and ad2and as2are the after curves cost push inflation is depicted by